Compliance is defined as either a state of being in accordance with established rules and regulations, specifications and guidelines or in the process of becoming so. The definition can also refer to efforts to ensure a business is abiding by the regulations set forth in the industry and the legislations outlined by the government. However, there are a lot of businesses that believe compliance involves a lot of paperwork, time and effort and is not really worth it. But, in the long term, compliance can prove to be immensely beneficial for every organization.
Why should your business have a compliance program? Here are some good reasons to do so:
You are required
Sometimes, it is quite straightforward; it is essential for your business to have a compliance program in place. This is probably because you are part of a heavily regulated industry, which explicitly requires you have a formal compliance program. It is also possible that the industry you are part of is subject to a big regulatory overhead and a formal compliance program is implicitly required.
Having a compliance program in place is also a great way of reducing the repercussions of federal prosecution in the case of illegal behavior. It is stated under the Federal Sentencing Guidelines that a business that has been convicted can get a reduced sentence if, at the time of the offense, they had an effective ethics and compliance program implemented. Several features are spelled out by the guidelines, which should be found in a compliance program of the business, in order for them to get the credit. If the requirements set out in the Guidelines are satisfied, it can be great for avoiding prosecution completely, enabling the business to advocate for a prosecution agreement or for mitigating the fine that must be paid if a prosecution agreement is negotiated. A reliable service, such as Minutes Depot can be helpful for you in this regard.
Reduce risk and prevent bad behavior
While it is not possible for a compliance program to prevent all problems altogether, it can be great for isolating an incident if a problem occurs and then deferring further prosecution. For instance, if an employee of a business violates laws, but the business itself practices strong compliance, the company itself may not be prosecuted and only action against the employee is taken.
Response to crisis
Compliance programs often originate when a business is facing a crisis. It could be because it has narrowly missed prosecution or is facing prosecution so the business decides to implement a program in order to ensure the problem doesn’t surface again in the future.
Not having a compliance program in place can end up destroying the reputation of a business if they end up on the wrong side of the law and don’t have any measure to defend themselves. Yes, it might be a time consuming and require some effort, but eventually, a compliance program can work wonders for a business as it shows its commitment to work in accordance with all legal, ethical and moral laws.